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COMPANY ACCOUNTING POLICIES 1) No reversing entries are used. 2) All numbers are rounded to the nearest dollar. 3) The straight-ine method of depreciation is
COMPANY ACCOUNTING POLICIES 1) No reversing entries are used. 2) All numbers are rounded to the nearest dollar. 3) The straight-ine method of depreciation is used for all fixed assets, except where otherwise stated. 4) Straight-line amortization is used for all intangible assets and all bond investments; all amounts are calculated to the nearest month. 5) Amortization methods for bonds payable will be indicated separately. 6) When bond investments occur between interest payment dates (and accrued interest is paid) the interest receivable account is debited. the interest payable account is credited. December 31 7) When bond issuances occur between interest payment dates (and accrued interest is received) 8) The company's fiscal year ends on December 31. Adjusting entries are prepared once a year, on Additional information regarding items on the 12/31/x1 post-closing trial balance: 1) The trading securities portfolio consists of the following securities at 12/31/x1: cost at date of purchase amount purchased 700 shares $ 450 shares$ Date of Security purchase 4/15/x1 7/28/x1 11/1/x1 27 /share 33 /share Fosse Company stock Bennett Company bonds 44,00046,500 plus accrued interest face value Note: The Bennett Company bonds mature on 12/31/x4. The stated interest rate is: Interest is paid annually on July 1 9% Fair value information for the trading securities portfolio as of 12/31/x1: Security Fair value Verdon Company stock Fosse Company stock Bennett Company bonds $ 29 /share $29 /share 101.4% of par COMPANY ACCOUNTING POLICIES 1) No reversing entries are used. 2) All numbers are rounded to the nearest dollar. 3) The straight-ine method of depreciation is used for all fixed assets, except where otherwise stated. 4) Straight-line amortization is used for all intangible assets and all bond investments; all amounts are calculated to the nearest month. 5) Amortization methods for bonds payable will be indicated separately. 6) When bond investments occur between interest payment dates (and accrued interest is paid) the interest receivable account is debited. the interest payable account is credited. December 31 7) When bond issuances occur between interest payment dates (and accrued interest is received) 8) The company's fiscal year ends on December 31. Adjusting entries are prepared once a year, on Additional information regarding items on the 12/31/x1 post-closing trial balance: 1) The trading securities portfolio consists of the following securities at 12/31/x1: cost at date of purchase amount purchased 700 shares $ 450 shares$ Date of Security purchase 4/15/x1 7/28/x1 11/1/x1 27 /share 33 /share Fosse Company stock Bennett Company bonds 44,00046,500 plus accrued interest face value Note: The Bennett Company bonds mature on 12/31/x4. The stated interest rate is: Interest is paid annually on July 1 9% Fair value information for the trading securities portfolio as of 12/31/x1: Security Fair value Verdon Company stock Fosse Company stock Bennett Company bonds $ 29 /share $29 /share 101.4% of par
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